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News 521 views last update:6 Aug 2012

Larger farms foreseen in Russia

At a preview for the AgroFarm exhibition held at DLG's headquarters in Frankfurt, some 70 experts and companies presented viable strategies for the Russian animal production market.

A government incentive scheme and favourable costs are key factors behind the vast investment and economic viability that the animal production sector in Russia is currently experiencing.

The support of animal production on home soil in Russia continues to represent a key political objective. The sector is therefore expected to continue to develop, employing the latest techniques for efficient production.

The trend is towards bigger farms, and, along with an increasing dairy production sector, the meat will also be a key focus, stated Dr. Olga Hunger, DLG's project manager for Russia.

Demanding customers
With high quality and service uppermost in their minds, Russian customers are very demanding, a requirement that should be considered by suppliers and manufacturers of animal production technologies.

Furthermore, the focus is on the latest techniques, meaning that manufacturers should present the latest and most suitable equipment and models for the Russian market.

Networking amongst business partners in Russia is also a key success factor so maintenance of a high quality image through offering best in class products is crucial for long term success.

New farms, new techniques
According to Russian experts, Dr. Thomas Tanneberger, editor of Russian based „New Agriculture" and Stefan Dürr, President of EkoNiva and Friedrich Falkenstein from Maratec GmbH who were speaking at the event, ex-collective farms tend to employ simpler techniques at lower cost, whereas the newer farms require the most recent techniques with significant investment behind them.

If a business succeeds in being included in the government incentive scheme, it also benefits from improved image, attracting political support.

Once government investment support has been achieved, it is also worth investigating which schemes are available at the regional level.

Sound business results and fair salaries are just some of the key criteria. A minimum equity of 20% is a further requirement to be eligible for a government-supported loan but other investment opportunities, for example in dairy production, can be equally rewarding.

AgroFarm exhibition
AgroFarm 2008, the International Exhibition for Animal Husbandry Breeding, will be held in Moscow from 24 to 26 April 2008.

Some 120 exhibitors from 11 countries presented modern genetics as well as livestock-keeping and feeding technology for pigs, cattle and poultry at the first edition in 2007. some 6,800 visitors from all parts of Russia came to the exhibition.

Related website: AgroFarm 

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